ASEAN-BAC ISSUES GROUNDBREAKING REPORT ON CSR AND CALLS FOR ESTABLISHMENT OF REGIONAL CSR WORKING GROUP
The report recommends CSR Working Group to align standards, strengthen oversight and boost private sector contributions
Kuala Lumpur, 18 August 2025 – Today, ASEAN Business Advisory Council (ASEAN-BAC) launched the Corporate Social Responsibility (CSR) in ASEAN Report, the first comprehensive, region-wide blueprint to strengthen corporate giving and cross-border philanthropy in ASEAN. A central recommendation of the report is the establishment of a CSR Working Group, which would drive regional alignment, improve oversight, and catalyse greater private sector contributions across the region.
Commissioned by ASEAN-BAC Malaysia and researched by the Centre for Asian Philanthropy and Society (CAPS), the report is a core part of the ASEAN Corporate Philanthropy Framework, one of the 12 key initiatives under Malaysia’s ASEAN-BAC Chairmanship in 2025. Released at a critical time as international aid to Southeast Asia declines, the report notes that foreign donors contributed about US$255 billion between 2015 and 2022. With those commitments now being reduced, it urges ASEAN to look inward and mobilise domestic and private sector resources.
“This landmark report makes clear that ASEAN must step up our own corporate giving. The proposed CSR Working Group within the report is a practical way to align standards, strengthen oversight and mobilise the private sector as a force for equitable development. We can turn CSR into a strategic force for inclusive and sustainable growth in ASEAN, and this is also very much in line with the Malaysian government’s Chairmanship theme in 2025,” said Tan Sri Nazir Razak, Chairman, ASEAN-BAC.
The report recommends that the proposed CSR Working Group would act as a dedicated regional platform bringing together representatives from governments, businesses and civil society. Its role would be to clarify definitions of CSR, harmonise disclosure standards, encourage enabling policies and incentives, and ensure that contributions are deployed more strategically for maximum impact.
Alongside the Working Group, the study also calls for stronger oversight of CSR, improved
fiscal incentives to encourage giving, and clearer recognition of CSR as a distinct but
complementary pillar to the broader Environmental, Social and Governance (ESG) agenda.
With most ASEAN nations still classified as developing economies, funding is urgently needed to support education, healthcare, livelihoods, climate resilience and disaster recovery. CSR can help fill this gap. The report also notes that ASEAN companies already have a long tradition of community giving rooted in family and cultural values, but that the absence of a common definition of CSR and varying regulations and tax incentives make it difficult to scale or coordinate efforts across borders. Cross-border giving therefore remains rare despite the interconnected nature of the region’s economies. If corporate philanthropy in ASEAN reached the same share of GDP as in the United States, it could unlock an estimated US$5.3 billion every year to meet pressing societal needs.
Dr Ruth Shapiro, Co-Founder and Chief Executive of CAPS, added: “Corporates in ASEAN
have great experience and understanding of how to work with communities through both their
business operations and their social investments. Utilising not only their financial resources,
but experiential and talent resources can and does make their community investments
meaningful and important. ASEAN BAC’s recommendations point a way to leverage these
resources even further. We applaud ASEAN BAC’s leadership and look forward to continuing
our efforts to maximize corporate social investment in the region.”
Once shared with the governments of the ASEAN Member States (AMS), implementation will depend on their national priorities and the active engagement of the private sector. The report makes clear that the proposed CSR Working Group will be central to advancing these efforts, serving as the focal point to align regional approaches, strengthen oversight, and unlock the full potential of corporate philanthropy. Together with the broader set of recommendations, the report provides ASEAN with a practical mechanism to transform CSR into a powerful driver of sustainable and inclusive growth at a time when the region urgently needs alternative sources of development finance.
